Overstock Turns Medici Ventures Into a Fund to Reap Value of Blockchain Assets

“We remain bullish on blockchain technology but are changing the way we interact with these asset," said CEO Jonathan Johnson.

Jan 26, 2021 at 11:25 a.m. UTC
Updated Sep 14, 2021 at 11:01 a.m. UTC

Under a plan to eventually exit its blockchain-related investments, Overstock is converting its Medici Ventures subsidiary into a fund managed by venture capital firm Pelion Venture Partners.

  • Overstock explained Monday that blockchain-focused Medici Ventures will be converted into a limited partnership under the new management following legal and regulatory approval.
  • The new fund will have a capital commitment of $45 million with an eight-year life.
  • Pelion Venture Partners, which invests in early-stage startups, will be the general partner of the fund and Overstock will be a limited partner in the fund.
  • According to the partnership agreement terms, the fund will return invested capital to Overstock first and then split profits on successful exits.
  • “We remain bullish on blockchain technology but are changing the way we interact with these assets. As we evaluated how to create the highest return for our shareholders, we determined it is time to partner with a seasoned venture capital firm to oversee the portfolio and make follow-on investment decisions,” said Overstock CEO Jonathan Johnson.
  • Under the new terms, Medici Ventures will no longer provide software development and design services to its portfolio companies.
  • Overstock will retain a direct minority equity interest in the blockchain technology firm tZERO Group, while the fund will hold a minority ownership stake.
  • Following the announcement, Overstock shares (NASDAQ: OSTK) were trading 11.28% higher at $75 in Monday’s pre-market session.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Kwon Proposes Forking Terra in ‘Revival Plan 2’

"$UST peg failure is Terra’s DAO hack moment - a chance to rise up anew from the ashes," Terraform Labs CEO Do Kwon said.

"$UST peg failure is Terra’s DAO hack moment - a chance to rise up anew from the ashes," Terraform Labs CEO Do Kwon said.

2
Bitcoin Struggles at $27K-$30K Support Zone; Resistance at $35K

BTC's upside appears limited despite short-term support.

BTC's upside appears limited despite short-term support.

3
Art in the Age of the Metaverse

4
Crypto Funds Saw Year's Highest Inflows as Terra Crisis Crashed Markets

Some $274 million flowed into digital asset funds as investors bought the dip, amid a broad crypto-market sell-off triggered by Terra's turmoil.

Some $274 million flowed into digital asset funds as investors bought the dip, amid a broad crypto-market sell-off triggered by Terra's turmoil.